BUSINESS ETHICS AND ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS FOR TURKISH ECONOMY

Sa？etak The roots of the science of modern economics are originated from the ideas of Adam Smith who is not a pure economist but a moralist-philosopher. Basic concepts in the Wealth of Nations which is perceived as the hand book of economics depend on the arguments that Adam Smith suggests in his Theory of Moral Sentiments. In this theory, business ethics as a part of the Law of Sympathy appears as one of the factors that provide the invisible hand to operate properly. In light of this property, it is possible to assume business ethics as one of the components of the market mechanism. In this context, this study aims to analyze the link between business ethics and economic growth in the Turkish economy for the period 1988-2013. To this end, the study employs bounced cheques and protested bonds for representing the degradation of business ethics and tries to show how this degradation affects economic growth. Either illustrative or empirical results show that business ethics is an important determinant of economic growth in the Turkish economy and damaging it negatively effects the growth rate of the economy